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Outokumpu cuts European stainless steel surcharges for September

The outlook for September’s monthly alloy surcharges on austenitic grades of stainless steel flat-rolled products in Europe is sharply lower again in the face of continued weakness in nickel and molybdenum prices, first mill announcements indicated Friday.
Finland’s Outokumpu, the continent’s largest producer, set its alloy adjustment factor for type 304 (4301) flat products at Eur1,082/mt ($1,219/mt) for September, its lowest level since April 2014 and down Eur84/mt from August.
Dollar-denominated nickel prices on the London Metal Exchange fell below $10,000/mt to hit a six-year low this month.
The LME nickel cash settlement price averages $10,623/mt for August to date, down from $11,386/mt for the month of July.

The surcharge for molybdenum-bearing type 316 (4401) flat products was set at a 20-month low of Eur1,481/mt, down from Eur1,607/mt in August.
Molybdenum oxide prices slumped to 11.5-year lows in July, falling below the $6/lb level for the first time since November 2003, and have continued to trade either side of $6/lb since then, basis Platts assessments.
This time last year the oxide market was trading at above $13/lb.
Meanwhile, Outokumpu’s surcharge for nickel-free type 430 flat products is down Eur16 to Eur459/mt for August.
Other European producers have yet to announce next month’s surcharges.